Press Releases

Flextronics Acquisition To Create Fifth Largest Adapter Supplier
Date: 12 February 2008

The recent announcement that Flextronics plans to purchase CEAG’s FRIWO Mobile Power Solutions unit would catapult Flextronics into the top five of world power adapter manufacturers. IMS Research estimates that following the planned acquisition, Flextronics could hold a 6-7% share of the $4.5 billion power adapter market. The proposed move could see Flextronics leap-frog its competitors to become one of the largest suppliers of adapters.

“It comes as no surprise that CEAG has decided to cash in FRIWO’s mobile power division” commented David Dewan, market analyst. “The mobile charger business has become increasingly commoditized and this is not in-line with FRIWO’s high-margin, advanced technology strategy.” Dewan added.

Dewan further comment, “Whilst the external power adapter market has seen tremendous growth over the past few years, it is now predicted to slow considerably. Shipments of mobile phones and hence power adapters are projected to again grow well in 2008, though longer-term prospects are less certain and so it may be some time until we see if this move by Flextronics will pay off.”

IMS Research regularly publishes detailed market data on external power adapters and chargers. For more information on the long-term growth prospects for the market, please visit www.imsresearch.com.

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